SAN DIEGO– LAWFUEL – The Legal Newswire –Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/bigband/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of BigBand Networks, Inc. (“BigBand”) (NASDAQ:BBND) common stock pursuant and/or traceable to the Company’s false and misleading Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with its March 14, 2007 initial public offering (“IPO”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 4, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at [email protected] If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/bigband/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges BigBand, certain of its officers and directors and its underwriters with violations of the Securities Act of 1933. BigBand develops, markets and sells network-based platforms that enable cable operators and telephone companies to offer video, voice and data services across coaxial, fiber and copper networks.
On March 20, 2007, BigBand closed its IPO of 12.3 million shares at $13.00 per share for net proceeds of $148.8 million pursuant to the Registration Statement. The complaint alleges that the Registration Statement failed to disclose that BigBand was having difficulty integrating and customizing its switched digital video technology, that BigBand’s past results were not indicative of its future operations and that the viability of the Company’s cable modem termination system business was in doubt. Due to defendants’ positive statements and failure to disclose the above adverse facts, BigBand stock traded as high as $21.43 per share on May 3, 2007.
On August 2, 2007, BigBand issued a press release announcing disappointing second quarter 2007 results. On this news, BigBand’s stock price collapsed from $13.98 per share on August 2, 2007 to close at $10.10 per share on August 3, 2007. Then on September 27, 2007, after the market closed, BigBand issued a press release revising its third quarter 2007 results. On this news, BigBand’s stock price collapsed from $9.07 per share on September 27, 2007 to close at $6.40 per share on September 28, 2007 – a one day decline of $2.67 per share or 29% on volume of 6.8 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers of BigBand common stock pursuant and/or traceable to the Company’s false and misleading Registration Statement issued in connection with its March 2007 IPO (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.